China's currency policy has been criticized for its apparent pursuit of mercantile advantage by artificially stimulating exports, with potential adverse effects on other economies. While China's currency policy may have positive output effects, there may be additional profits or losses. This paper computes the annual and cumulative accounting profits from currency intervention since 1994 when China began its currency intervention. It is shown that profits initially were positive but since 2007 China has lost a massive amount from the currency market.

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This is the peer reviewed version of the following article: Hailong Jin and Choi, E. Kwan, “China’s Profits and Losses from Currency Intervention, 1994-2011,” Pacific Economic Review 19 (2014), 170-83., which has been published in final form at http://dx.doi.org/10.1111/1468-0106.12059. This article may be used for non-commercial purposes in accordance With Wiley Terms and Conditions for self-archiving